10. Which of the following statements is true?

AIt is recommended when making a budget to incorporate a conservative amount of slack to account for unexpected events.

B.An example of an unfavorable variance is when actual expenses are less than budgeted expenses.

C.Budgets are estimates for revenue and expenditures that are used to set, achieve, and evaluate an organizations goals.

D.Static budgets are generated at the beginning of the year and then subsequently updated for the actual level of volume that occurs during the period.

E.An example of a favorable variance is when actual revenue is less than budgeted revenue.